Energy
Chesapeake CEO Fails to Disclose $1.1 Billion in Loans -- Reuters (CHK)
Published:
Last Updated:
Chesapeake Energy Corp. (NYSE: CHK) CEO Aubrey McClendon has received loans totaling $1.1 billion in the last three years backed by his share in Chesapeake’s wells. Under the terms of his employment contract, McClendon may take up to a 2.5% interest in every well that the company drills. Neither McClendon nor Chesapeake has disclosed the loans to shareholders.
According to an exclusive report at Reuters, McClendon uses the borrowed funds to as operating funds to support his share of the wells:
The size and nature of the loans raise questions about whether McClendon’s personal financial deals could compromise his fiduciary duty to Chesapeake investors, experts who reviewed the documents told Reuters.
McClendon and the company deny any conflict of interest, and McClendon told Reuters, “There are no covenants or obligations in my loan documents or mortgages that bind Chesapeake in any way.”
Chesapeake’s shares are down about -2.5% at the market open this morning, at $18.65, a new 52-week low. The 52-week high for the shares is $35.75.
Paul Ausick
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
